Let's supposed I've been issued with an outside IR35 determination by my client. As far as I'm concerned, this is an accurate determination: it matches my own view and that of Qdos. However, the SDS doesn't meet the standards laid down in the draft legislation, in that it doesn't specify the reason for the determination. (HMRC: "A status determination statement issued before 6 April 2020 is valid under the new rules, if it contains the reasons for the conclusion reached.")
So, given that the SDS is invalid, the client are now liable for all 'disguised employee' taxes (rather than the fee payer being liable). But there are no such taxes - as it's outside IR35. So, is the validity of the SDS irrelevant if an outside determination has been made?
Or should I insist on a valid SDS being issued? If so, what is the risk of not doing so?
So, given that the SDS is invalid, the client are now liable for all 'disguised employee' taxes (rather than the fee payer being liable). But there are no such taxes - as it's outside IR35. So, is the validity of the SDS irrelevant if an outside determination has been made?
Or should I insist on a valid SDS being issued? If so, what is the risk of not doing so?
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